I'm really enjoying this thread. Thank you @Richard C for starting it. I'm NOT a Kiyosaki fan! In fact, I have a question about the accuracy of this book (see the end of this post).
I've just finished reading Rich Dad, Poor Dad after hearing the umpteenth interviewee in the podcasts recommend it. I began to wonder how I'd had such a blind spot. I have one of those dreaded "formal" educations in real estate finance from an accredited university (University of Southern California, go Trojans), worked as an analyst for developers and went on to brokerage for high-rise office product. The GOOD NEWS in this is that I have an education and I've been taught how to analyze and process information, which is fundamental to success. The BAD NEWS (and this I will give Kiyosaki and his devotees) is that I was taught to have a job. I got caught being deal reliant... I was only getting a paycheck if I was hustling and putting in the hard work. I see guys working for Blackstone who get caught in that trap as well. Would have been nice if I'd been a little more educated about creating my own personal passive income.
That said, IMHO, when you're just out of college (or just entering the workforce), there are very few ways around that. You have to start working...you need a paycheck...you need to save. This no money down thing, with no experience, is guru, predatory talk. For me, Kiyosaki's book could have been a 10-page pamphlet, with those little diagrams and arrows...I liked those.
Lastly, here's my question about the accuracy of Rich Dad, Poor Dad. Perhaps I'm just missing something but on the few occasions that Kiyosaki really talked details about his zero-money-down real estate conquests, it didn't add up. I'd feel a lot better about this book if someone could explain this to me...
In Chapter Six (page 116), Kiyosaki details a house he acquired from a bankruptcy attorney. He says he had NO MONEY to put into the deal and in fact, had to borrow $2,000 from a friend for the down payment. The house was valued at $75,000 retail but he was purchasing through this bankruptcy attorney for $20,000. During the escrow process he places an ad in Craigslist advertising this home for sale for $60,000 for NO MONEY down. Fine. This he says created a feeding frenzy, which I'm sure it did, it's very clever. And he required a $2,500 processing fee from the homebuyer, so he was able to repay the person who lent him the $2000 in the first place. Love it. He goes on to brag about how he instantly created $40,000 in is asset column. Love that too...hats off. What he fails to explain as he goes on and on about this NO MONEY DOWN deal is where the apx $17,500 came from to purchase it at the end of escrow ($20k purchase price - $2,500 processing fee).
HELP! Am I missing something?... or do I just need to drink a little Kool-Aid and it'll all become clear?
